"I just got a 12% raise at my company as part of the regular pay adjustment. It's because my director noticed someone in the same role made this much more than I do."
A real story, and a common one. Let me tell you how compensation and open salaries at Netflix work in practice:
A real story, and a common one. Let me tell you how compensation and open salaries at Netflix work in practice:
1. Pay. Netflix pays top of the market... in cash. No equity (although you can ask for it). No bonuses. Just cash. A LOT of it.
How much? As much as competitors (Google, Meta, Amazon) etc pay and they move upwards with them when needed.
How much? As much as competitors (Google, Meta, Amazon) etc pay and they move upwards with them when needed.
2. (Kind of) open compensation. Everyone who is at director or above at Netflix can see the compensation of *every* other Netflix employee - upwards as well. It's all cash, so they see one (big) number.
We're talking 1,000+ people. Unheard of at any other similar size company.
We're talking 1,000+ people. Unheard of at any other similar size company.
3. No performance rating, "just" the keeper test.
Usually, person X and person Y at the same level make different compensation, and it goes down to X had better performance reviews than Y.
Netflix doesn't do this. If you work here, you're a high performer. Else you're fired.
Usually, person X and person Y at the same level make different compensation, and it goes down to X had better performance reviews than Y.
Netflix doesn't do this. If you work here, you're a high performer. Else you're fired.
4. Same pay across the same roles. If person X and person Y are at the same level, same geography, do similar work and person X gets an external, higher offer, Netflix will typically counter and offer them more.
On the next compensation review, person Y gets the same raise.
On the next compensation review, person Y gets the same raise.
And this is what happened in the above story.
Person X either got a raise or got a fresh offer when joining. A director spotted this higher salary, and made a note to move person Y - who is in their org - up to the same pay level.
A bold system that worked great for Netflix.
Person X either got a raise or got a fresh offer when joining. A director spotted this higher salary, and made a note to move person Y - who is in their org - up to the same pay level.
A bold system that worked great for Netflix.
This system is also the reason that if you get an offer at Netflix, you *will not* be lowballed. One of the very few companies.
They offer the "top of the market rate" that everyone is already making.
They can not offer less, by design (if would raise the question of 'why?')
They offer the "top of the market rate" that everyone is already making.
They can not offer less, by design (if would raise the question of 'why?')
"How much are we talking about?"
In the US, around $250K for entry-level eng, $550K for sr eng, $620K for eng manager, $500K for product manager, $450K for data scientists. Per year, all cash. In EU: below, still a lot.
Check more at levels.fyi/company/Netfli… (thanks @zuhayeer)
In the US, around $250K for entry-level eng, $550K for sr eng, $620K for eng manager, $500K for product manager, $450K for data scientists. Per year, all cash. In EU: below, still a lot.
Check more at levels.fyi/company/Netfli… (thanks @zuhayeer)
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